The Mediation Role of Compatible Advantage in Mobile Wallet Usage

Abstract

Mobile wallet adoption continues to grow but has not become a mainstream method of payment. Although the benefits of mobile wallets such as convenience, contactless features, and ease of use provide the impetus for some to adopt, others continue to hesitate. Some may be content with their existing payment methods and perceive that the benefits are not enough to change. Identifying factors that contribute to mobile wallet adoption are needed in order to expand its diffusion. Although some factors have been identified in previous research, a more in-depth inquiry is needed. Hence, we study the role of compatible advantage as a mediator in the relationship between attitudes towards mobile wallet usage and behavioral intentions. In the context of mobile wallets, compatible advantage represents one’s perception of the benefits that can be derived from and the compatibility with existing methods of payment. We create a novel model by extending the Theory of Planned Behavior with compatible advantage and investigate its mediation effect. Our results show that compatible advantage mediates the relationship of attitude and behavioral intention. Potential users can be encouraged to adopt a mobile wallet if they are made aware of its benefits and compatibility with current payment methods. Our research provides guidance to practitioners and presents a model for future research.